In addition to the new Xbox One S that will launch in August 2016, Microsoft today revealed "Project Scorpio". It is a new Xbox One that will be released in late 2017 with support for 4K gaming and virtual reality.
First Xbox with 4K gaming
For now it goes under the code name "Project Scorpio" but when Microsoft releases it in late 2017 it will become a much more powerful Xbox game console. The company says that it will be capable of delivering 6 teraflops of graphics performance and feature an 8-core CPU. For comparison the current Xbox One can do about 1.3 teraflops.
The new, more powerful Xbox One will run the exact same games as the first Xbox One and Xbox One S. Microsoft emphasizes that the game catalog will work across all generations of Xbox. However, games for Scorpio will be reproduced in significantly higher picture quality, partly because of support for 4K resolution in up to 60fps.

Games in virtual reality
In addition, "Project Scorpio" will be the first Xbox to support virtual reality. Rumors have suggested that Microsoft intends to partner with Oculus for VR but none of the companies are ready to confirm yet. Microsoft only confirmed that the new Scorpio console will deliver "high-end VR".
One of the first games to be released in VR for Xbox is Fallout 4.
Project Scorpio will launch in late 2017 ahead of the Holiday season – more than a year from now. Sony, Microsoft’s director competitor in game consoles, has already confirmed that it intends to launch a PlayStation 4 with 4K. This is Microsoft’s response.
No pricing details were announced but expect Scorpio to be more expensive than the current console.
- Source: Microsoft, photo from Ars Technica